ECU Silver Mining Inc.
TSX : ECU

ECU Silver Mining Inc.

August 14, 2007 08:30 ET

ECU Silver Announces Financial Results for the Second Quarter Ended June 30, 2007

TORONTO, ONTARIO--(Marketwire - Aug. 14, 2007) - ECU Silver Mining Inc. (TSX:ECU) is pleased to announce that financial results for the quarter ended June 30, 2007 and the corresponding Management Discussion & Analysis have been filed and are available on Sedar (sedar.com) and the Company website www.ecu.ca.

Financial Summary

The Company is pleased to provide Shareholders with the following financial highlights and operating results for the three months and six months ending June 30, 2007. All numbers are in Canadian dollars unless otherwise mentioned.

Comparative Financial Highlights for 3 month periods ended June 30, 2007 and 2006



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Three month period ended Six month period ended
on June 30 on June 30
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2007 2006 2007 2006
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Total revenues 474,601 1,282,615 1,348,092 2,403,588
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Total costs 1,668,275 661,802 3,204,163 1,273,176
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Depreciation and depletion 180,758 206,388 310,670 365,694
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Mining operating (loss)
profit (1,374,432) 414,425 (2,166,741) 764,718
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Administration 2,465,184 939,389 4,097,354 1,849,239
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Other (406,194) (659,991) (270,793) 491,698
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(Net loss) Net income (3,433,422) 135,027 (5,993,302) (1,576,219)
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Capital investments (2,169,950) (881,567) (3,306,253) (1,906,539)
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Cash and cash equivalents 23,288,702 1,779,384 23,288,702 1,779,384
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Net loss per-share (0.02) (0.01) (0.03) (0.01)
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June 30, 2007 December 31, 2006
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Financial position ($)
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Fixed assets 48,730,300 22,765,262
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Working capital 16,828,659 (4,840,319)
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Shareholders' equity 33,346,050 8,681,489
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Second quarter highlights

In the 2nd quarter of 2007, revenues of $474,601 were generated from metals sales, compared with $1,282,615 in the same period in 2006 representing a decrease of 63%. The difference is essentially due to less silver, lead and zinc being processed as a result of a the shift in focus towards exploration and mineral resource definition and delineation. This work started in late 2006 and has been accelerated in the 2nd quarter of 2007 when essentially all the material processed in the mill came from development headings and bulk mining a test stope in new areas of the Mineralized Corridor that are being evaluated.

ECU President Stephen Altmann comments "In the 2nd Quarter of fiscal 2007, the Company successfully achieved some key market milestones. In particular, ECU completed a $28.75 million private placement with a syndicate of leading firms that was oversubscribed and also graduated to a listing on the Toronto Stock Exchange. ECU is now well positioned financially and market-wise. In recognition of the company's performance in 2006, ECU was placed by the TSX Venture Top 50 Ranking as the #1 Canadian Emerging Public Company. Most recently, ECU announced what was essentially a new discovery at its Chicago Property. Chicago is well poised to add to ECU's explosive growth profile at Velardea."

Key Milestones

- The Company's listing on the TSX took effect on June 28, 2007 and marks a graduation from the TSX Venture Exchange, contributing to higher profile and global access to ECU shares.

- The #1 ranking by the TSX Venture 50, announced June 21, 2007, put ECU at the top of more than 2000 companies listed on the TSX:V. The "50" is a group of the top 10 companies in each of five major industry sectors - life sciences, mining, oil & gas, technology and diversified industries - based on a ranking formula with equal weighting given to one-year revenue, return on investment, market cap growth and trading volume.

- On June 4, 2007, lead agent Blackmont Capital Inc., along with CIBC World Markets Inc., Desjardins Securities Inc., TD Securities Inc. and Salman Partners Inc. exercised in full, their over-allotment options. ECU issued an aggregate of 12,500,500 Units pursuant to the Offering for total gross proceeds of $28,751,150. The successful financing gave ECU a broader base of institutional shareholders along with a strong working capital position.

- Subsequent to the quarter ended, on August 9, 2007 the Company announced new assay results from its Chicago Property with grades ranging up to 10g/t Gold, 977g/t Silver, 26% Lead, 3.6% Zinc and 0.6% Copper over 0.49 meters

"Our strategy is to become one of Mexico's pre-eminent silver producers. ECU is well financed to deliver growth to our shareholders." said Mr. Altmann.

Exploration Update

The Company's primary drilling and development focus is on the Velardea Property where the Company is delineating the Mineralized Corridor MC at Santa Juana and expanding resources at San Mateo. The MC at Santa Juana extends 230 metres from level 15 to level 18 and drilling has confirmed that mineralization continues below level 18. The MC is now approximately 100 metres wide, over 230 in depth and has been followed along strike for over 500 metres. The MC is host to packages of veins which the Company believes in some cases will be amenable to bulk mining applications. At San Mateo, the Company continues to investigate the extent of the San Mateo vein system. The Company is continuing its work on the preparation of an updated N.I. 43-101 along with a pre-feasibility study.

Recent drilling results suggest that certain vein packages within the MC have grade profiles that may be comparable to the corresponding, historically mined narrow veins at Santa Juana. Equally important is that the vein packages have significant widths which are essentially up to 24 times that of the narrow veins. This suggests that some of the key vein packages are potentially amenable to bulk mining applications at grades comparable to narrow veins at Santa Juana. However, until the pre-feasibility study is complete there can be no assurances of this happening.

While Santa Juana is the Company's primary exploration and development focus, discovery and development drilling continues at three additional locations;

1. Drilling at San Diego (9 km north-east of Velardea) where ECU has a Joint Venture with Golden Tag Resources and has announced several high grade assay results in the area.

2. The Chicago Property (1 km south of Velardea) where the Company recently announce new assay results.

3. Testing for continuity of the San Mateo vein at depth within the Velardea Property.

In preparation of the updated N.I. 43-101 technical report and the pre-feasibility study, ECU has engaged Micon International and Kappes, Cassidy and Associates.

About ECU

With executive offices in Toronto, Ontario, ECU Silver Mining Inc. (www.ecu.ca) is a Canadian silver and gold mining and exploration company that is involved in the evaluation, development and mining of precious metal deposits in Mexico. The Company owns the historically prolific Velardea Property which holds five historical mines and a milling operation in the state of Durango, Mexico. ECU's goal is to become one of Mexico's largest producing silver mines. ECU's common shares are listed on the TSX under the trading symbol ECU.

Statements in the release that are "forward-looking statements" are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially. We undertake no duty to update any forward-looking statement to conform the statements to actual results or changes in our expectations.

The TSX does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • ECU Silver Mining Inc.
    Stephen Altmann
    President
    (416) 644-8640
    (416) 644-8801 (FAX)
    or
    ECU Silver Mining Inc.
    Richard Buzbuzian
    Vice President
    (416) 644-8640
    (416) 644-8801 (FAX)
    Website: www.ecu.ca